SYNOPSIS ON

COMPARITIVE ANALYSIS ON CAR LOAN

SCHEMES OF SBI AND HDFC BANK

SUBMITTED TO

SUBMITTED BY

Dr. Rajwinder Singh

Abhinav Grover
Roll No:15421174
MBA-IInd

PUNJABI UNIVERSITY, PATIALA

SCHOOL OF MANAGEMENT STUDIES

Introduction
There lies a question that a person who does not have a good amount of money at a particular
time has no right to dream? Is he not authorized to fulfil his desires on time? Should he stop
dreaming? No, because there lies a solution. Loans are available for these purposes.
Loans are provided to people for such critical circumstances which may occur at any time. In
anyone's life a situation may come when all of sudden he may require cash. There may occur
any kind of emergency when you need huge amount of money and you cannot always borrow
money from your friends and relatives. For each and every kind of need, suitable loans are
available with the banks.
In finance, a loan is the lending of money from one individual, organization or entity to
another individual, organization or entity. A loan is a debt provided by an entity (organization
or individual) to another entity at an interest rate, and evidenced by a promissory note which
specifies, among other things, the principal amount of money borrowed, the interest rate the
lender is charging, and date of repayment.
Whatever may be the kind of loan, all banks have full-fledged facilities. All kind of loans
have their own importance. Above all, need of money explains the importance of loan.
Appling for loan is very easy.
But before applying, one must go through the lending policies of other banks too. Different
banks have different policies and if we get loan on low interest rate it is beneficial for us.Due
to competition, the banks are trying their best to attract people by providing different schemes
which in turn is good for people.
Banks just try to study the equilibrium of the loan in a particular market at a particular time.
This makes the banks to get the perfect rate of interest for a loan. They also study what the
other banks have to offer. This indirectly helps the common man who has different options
and due to competition he will get a cheaper loan.

Objectives of the study

To study the car loan schemes provided by the State Bank of India and HDFC.
To study the detailed procedure involved in the sanctioning of car loan.
To study the awareness of car loan among the customers.
To make the comparative analysis on the car loan schemes of SBI (Public Sector)&
HDFC (Private Sector) banks.
To find out the documents needed for getting the car loan.
To study the interest rates of SBI & HDFC banks.

Data Methodology
For the purpose of this study, both primary data and secondary data were used.

Primary Data :
Visit to the banks, Interview with the branch managers, staffs & customers of the banks.

Secondary Data :
Books, Internet, Newspapers, Pamphlets

Banks selected for the study:

State Bank of India
HDFC Bank

State Bank of India

State Bank of India (SBI) is an Indian multinational, public sector banking and financial
services company. It is a government-owned corporation with its headquarters in Mumbai,
Maharashtra. As of 2014-15, it had assets of 20.480 trillionand more than 14,000 branches,
including 191 foreign offices spread across 36 countries, making it the largest banking and
financial services company in India by assets. The company is ranked 232nd on the Fortune
Global 500 list of the world's biggest corporations as of 2016.
The bank traces its ancestry to British India, through the Imperial Bank of India, to the
founding, in 1806, of the Bank of Calcutta, making it the oldest commercial bank in
the Indian Subcontinent. Bank of Madras merged into the other two "presidency banks" in
British India, Bank of Calcutta and Bank of Bombay, to form the Imperial Bank of India,
which in turn became the State Bank of India in 1955. Government of India owned the
Imperial Bank of India in 1955, with Reserve Bank of India (India's Central Bank) taking a
60% state, and renamed it the State Bank of India. In 2008, the government took over the
stake held by the Reserve Bank of India.
State Bank of India is a banking behemoth and has 20% market share in deposits and loans
among Indian commercial banks.

Revenue:2.7287103 trillion (2016)

Profit: 127 billion (2016)

Total Assets:20.480 trillion (2014-15)

HDFC Bank
HDFC Bank (Housing Development Finance Corporation) is an Indian banking and
financial services company headquartered in Mumbai, Maharashtra. It has about 87,555
employees and has a presence in Bahrain, Hong Kong and Dubai. HDFC Bank is the second
largest private bank in India as measured by assets. It is the largest bank in India by market
capitalization as of February 2016.It was ranked 69th in 2016 BrandZ TM Top 100 Most
Valuable Global Brands.
In 1994 HDFC Bank was incorporated, with its registered office in Mumbai, India. Its first
corporate office and a full service branch at Sandoz House, Worli was inaugurated by the then
Union Finance Minister, Manmohan Singh.
As of June 30, 2016, the Banks distribution network was at 4,541 branches and 12,013
ATMs.

Revenue: 10,588.1 crore (2016)

Profit:3,238.9 crore (2016)
Total Assets: 755,100 crore (2016)

Negative Points:
1.
2.
3.
4.
5.
6.

Sometimes the loan sanctioning procedure becomes too lengthy& complicated.

There is communication gap to the right kind of people.
No long term customer relationship
There is a big list of defaulters.
The reasons for rejecting the loan application are not being informed
Frequent changes in terms and conditions of car loan schemes.